Free Trial

PREVIEW: The Japanese MOF will today...>

JGBS AUCTION
JGBS AUCTION: PREVIEW: The Japanese MOF will today sell Y700bn of 10-Year JGB's
re-opening JB#63. The MOF last sold 30-Year debt on August 6, the auction drew
cover of 3.499x at an average yield of 0.292%, average price of 102.95, high
yield of 0.299%, low price of 102.75, with 81.5080% of bids allotted at the high
yield.
- Outright yields look rich on a historical basis, but 30-Year JGBs have
cheapened vs. swaps recently and there has been some light concession over the
last couple of sessions. The 20-/30-/40-Year butterfly continues to operate just
above its recent lows. 20-Year paper offers a far more attractive Carry & Roll
proposition than 30-Year paper.
- It is also worth highlighting that the latest adjustments to the BoJ's Rinban
operations may have some knock on at today's auction and effectively limit
demand. However, this isn't a black & white case, global demand for safe haven
assets coupled with the impulse towards deeper monetary easing across the globe
could offset the headwinds from the Rinban adjustments.
- Results due at 0435BST/1235JST
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.